<article><p class="lead">Ukrainian scrap collection volumes have fallen over the past year, dented by declining availability of obsolete scrap and a sharp fall in exports.</p><p>Total Ukrainian scrap collection fell by 7pc on the year to 1.04mn t in January-April, industry association UAVtormet's president, Vladimir Boubley, said last week. The trend continued in May amid extended holidays at the beginning of the month.</p><p>Ukrainian scrap collection stood at 3.67mn t last year, a 1.3pc year-on-year drop from 3.74mn t in 2017, UAVtormet said.</p><p>Boubley cited falling flows of obsolete scrap as the main driver for the lower tonnage. Obsolete scrap accounts for 75pc of Ukraine's scrap generation.</p><p>The fall has also been caused by a duty on Ukrainian ferrous scrap exports, that has resulted in export volumes plummeting.</p><p>Ukrainian steelmakers' inflows of home-sourced scrap have increased, but have still not reached a level matching steelmakers' requirements. Their ferrous scrap receipts totalled 1.36mn t in January-May, up by 4.6pc on the year but still 4pc below demand, according to data from state-controlled metals association Ukrmetallurgprom.</p><p>In May, domestic supplies of ferrous scrap reached 350,000t, down by 5.7pc on the month but up by 9.4pc up on the year. This left steelmakers' scrap stocks at 130,000t as of 1 June, up by 30pc on the year and by 18.2pc on the month. </p><p>The rise in domestic supplies was largely underpinned by exports constantly falling since July 2018, when Ukraine raised its duty on ferrous scrap exports to €42/t ($47/t) from €30/t until. The levy will stay at this level until September, when it will rise to <a href="https://direct.argusmedia.com/newsandanalysis/article/1879082">€58/t until September 2021</a>.</p><p>Ukraine exported just over 36,500t of ferrous scrap in January–May, around seven times lower than in the same period of last year, data from the state fiscal service show. The country shipped 8,086t in May, with dispatches standing at 8,791t in April, 8,246t in March, 8,242t in February and 3,140t in January.</p><p>Turkey remained the largest recipient of Ukrainian scrap in January–May, taking 88.8pc of the total, followed by the Netherlands with 6.3pc and Germany with 3.4pc. </p><p>Ukraine's revenue from scrap exports dropped sharply, to $9.98mn in January–May from $83.48mn a year earlier — additionally affected by pressure from lower scrap prices at export outlets.</p><p>The <i>Argus </i>daily assessment for Ukrainian and Russian A3 grade scrap averaged $270.30/t fob Black Sea in January-April, down by 11.6pc on the year.</p></article>
